Common use of Fraud Chargeback Exception Clause in Contracts

Fraud Chargeback Exception. Notwithstanding anything to the contrary in Section 6.1, but subject to the limitation set forth in Section 6.2(b), HSBC and Merchant agree that where Merchant follows the terms and procedures and provides the information set forth below, a Card Sale or Sales Slip which is reasonably determined by HSBC to be the result of customer fraud, shall not be subject to Chargeback under Section 6.1.: (a) Merchant shall comply with Sections 5.4, 5.5, and 5.6. (b) Within twenty-one days of receipt of HSBC’s request, Merchant shall provide to HSBC a copy of the signed application, a copy of the applicant’s identification(s) provided at the time of the application, signed Sales Slip, and, if the Goods are shipped, signed delivery receipt. (c) Merchant shall receive a valid authorization code. (d) For Card Sales made to a Cardholder on the telephone or through the Internet, Merchant shall not ship for 24 hours after an approval to allow HSBC time to notify Merchant of suspected fraud after any appropriate fraud checks. (f) If Merchant has not yet shipped Goods, Merchant shall stop shipment when HSBC notifies Merchant that the transaction is a suspected fraud.

Fraud Chargeback Exception. Notwithstanding anything to the contrary in Section 6.1, but subject to the limitation set forth in Section 6.2(b), HSBC and Merchant agree that where Merchant follows the terms and procedures and provides the information set forth below, a Card Sale or Sales Slip which is reasonably determined by HSBC to be the result of customer fraud, shall not be subject to Chargeback under Section 6.1.: (a) Merchant shall comply with Sections 5.4, 5.5, and 5.6. (b) Within twenty-one days of receipt of HSBC’s request, Merchant shall provide to HSBC a copy of the signed application, a copy of the applicant’s identification(s) provided at the time of the application, signed Sales Slip, and, if the Goods are shipped, signed delivery receipt. (c) Merchant shall receive a valid authorization code. (d) For Card Sales made to a Cardholder on the telephone or through the Internet, Merchant shall not ship for 24 hours after an approval to allow HSBC time to notify Merchant of suspected fraud after any appropriate fraud checks. (e) [OMITTED]. (f) If Merchant has not yet shipped Goods, Merchant shall stop shipment when HSBC notifies Merchant that the transaction is a suspected fraud.